● If the business is going to suffer continually from being unable to sell its full production potential at the ‘normal’ price, it might be better, in the long run, to reduce capacity and make fixed-cost savings. Using the spare capacity to produce marginal benefits may lead to the business failing to address this issue. Would it be better for the airline to operate smaller aircraft or to have fewer flights – either of these leading to fixed-cost savings – than to sell off surplus seats at marginal prices?